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Gaming the system: suboptimal compliance with loot box probability disclosure regulations in China

Published online by Cambridge University Press:  23 July 2021

Leon Y. Xiao*
Affiliation:
The Honourable Society of Lincoln's Inn, London, UK Durham Law School, Durham University, Durham, UK Josephine Butler College, Durham University, Durham, UK The City Law School, City, University of London, London, UK
Laura L. Henderson
Affiliation:
The Honourable Society of Lincoln's Inn, London, UK Durham Law School, Durham University, Durham, UK The City Law School, City, University of London, London, UK
Yuhan Yang
Affiliation:
East China University of Political Science and Law, Shanghai, People's Republic of China
Philip W. S. Newall
Affiliation:
Experimental Gambling Research Laboratory, School of Health, Medical and Applied Sciences, CQUniversity, Sydney, NSW, Australia
*
*Correspondence to: E-mail: leon.xiao.y@gmail.com
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Abstract

Loot boxes provide randomized rewards in video games; their purchase is linked to disordered gambling and they are present in approximately half of UK video games. The relative novelty of loot boxes means that regulators and policymakers in various jurisdictions are still deciding how to regulate them. The People's Republic of China (PRC) is the first, and presently only, jurisdiction to legally require companies to disclose the probabilities of obtaining randomized loot box rewards – an approach that is also favored by the industry as self-regulation. This study is the first to assess paid loot box prevalence in the PRC and companies’ discretionary interpretations of probability disclosure regulations. Loot boxes were found in 91 of the 100 highest-grossing PRC iPhone games. Of games deemed suitable for children aged 12+, 90.5% contained loot boxes. Probability disclosures could not be found for 4.4% of games containing loot boxes. Disclosures were implemented through various methods both in-game and on the games’ official websites; however, consistent with the concept of ‘sludge,’ only 5.5% used the most prominent format of automatically displaying the probabilities on the in-game loot box purchase page. Loot box probability disclosures should be uniform and visually prominent to best help inform consumers.

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Type
Article
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press
Figure 0

Figure 1. Game 80's (仙境传说 RO:守护永恒的爱 [Ragnarok M: Eternal Love]) in-game probability disclosure was automatically displayed on the loot box purchase page (on the right side, annotated) without requiring any additional input from the player (9.6% of in-game disclosures). © 2003–2020 心动网络 [X.D. Network Inc.].

Figure 1

Figure 2. Game 104's (野蛮时代 [Brutal Age: Horde Invasion]) in-game probability disclosure can be accessed after interacting with the in-game customer support system and chatting with a bot (1.9% of in-game disclosures). This series of three screenshots shows the required steps. Notably, although the game is available in simplified Chinese, the interaction with the support bot could be done only in English. © 2020 Chengdu Nibirutech Co., Ltd, a.k.a. tap4fun.

Figure 2

Figure 3. Game 12's (神武 4) website probability disclosure was linked directly from the homepage (9.1% of website disclosures) through a hyperlink with the text ‘概率公示 [probability disclosure]’ at the bottom of the page (annotated). © 2020 多益网络有限公司.

Figure 3

Figure 4. Game 50's (天龙八部手游) website probability disclosures (annotated) were published under the ‘新闻 [news]’ or ‘公告 [notice]’ tab, which were then chronologically listed alongside other posts (78.8% of website disclosures). The disclosures for various loot boxes were presented in separate posts, making it more difficult for the player to identify the disclosure of a particular loot box. © 1998–2020 Tencent.

Figure 4

Table 1. Inter-rater reliability.

Figure 5

Table 2. Apple App Store age rating of games containing loot boxes (cumulative).

Figure 6

Table 3. Locations of found disclosures.

Figure 7

Table 4. Subcategories of found in-game disclosures.

Figure 8

Table 5. Subcategories of found website disclosures.

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